On Friday, UBS AG (NYSE:UBS) slashed YUM's target price from $84 to $73 following a deceleration in same store sales (SSS) from China. The CEO of the restaurant chain claims that the SSS in China is expected to decline 4 percent in the fourth quarter compared with a gain of 21 percent a year earlier. UBS predicts that the negative SSS growth will continue into the second quarter of 2013. Though it is yet to be seen what measures the country's new leadership will take to stimulate demand, it is quite possible that Chinese consumers will remain cautious over the near to medium term.

However, there are still some positives for the company's earnings. Mainly, the food costs may decline if the demand for food is down. In a bullish scenario, the price target comes out to be $86. This might be achieved if China's SSS growth rebounds to 0% in 1Q 2013 and remains positive throughout 2013, as the Chinese consumers' mood brightens - potentially as a result of the stimulus packages implemented by the new government. In addition, the US SSS growth continues to be in the range of 3%-5%. The bullish target price of $86 is based on a multiple of 20x and an EPS of $4.29 for 2014.

Deutsche Bank (NYSE:DB) downgraded Kohl's from buy to hold. DB also slashed the target price from $62 to $45. KSS is almost 10% down since the company reported a 5.6 percent decline in comparable store sales for four-week month ended November 24, 2012. KSS's operations in all regions of the US reported a negative growth for the month of November. The company believes that the poor results came because of a decline in the e-commerce sales. Also, Hurricane Sandy played its part in affecting the results.

DB commented the following:

"KSS once again posted very soft, arguably unacceptable SSS in Nov. with a down 5.6% print - instilling fears that the modest improvement we saw in July-Oct. was not trend worthy."

The stock is currently trading at a forward multiple of 9x. The stock also offers a dividend yield of 2.86%, which is more than Macy's (NYSE:M) (its competitor) dividend yield of 2.07%. DB believes that the Street's estimates for the fourth quarter of this year and the next year i.e. 2013 are too high. DB's analyst now predicts the EPS to be in the range of $4.00-$4.25 in 2013, which is less than the prior estimates of $4.57.

On Friday, Credit Suisse (NYSE:CS) revised the target price of TEVA from $53 to $51. The share price of the global pharmaceutical company is down by 5% since that announcement. On Thursday, TEVA announced that it now expected $4.85-$5.15 of EPS for the next year (2013). The revised estimate was below the Street's estimates of $5.63. The revenue for 2013 is expected to be between $19.5 billion and $20.5 billion (below the Street's estimates of $20.8 billion). 20% of TEVA's revenues come from the sale of Copaxone. Copaxone is a medicine which is used to cure the disease of multiple sclerosis. The sales from Copaxone are expected to be $3.74 billion for this year. This is less than the $3.9 billion figure predicted by Leerink Swann's analyst. There are speculations that this medicine may lose its market share to the new treatments like Gilenya and BG-12 which are products of Novartis AG (NYSE:NVS) and Biogen Idec (NASDAQ:BIIB) respectively.

Earlier on, TEVA reduced its overall sales forecast in May 2012, due to a weak economic growth and an increased competition in the generic drugs' segment.

The 11th of December should be an important day for the stock as TEVA will announce its strategy and future plans on that day. The announcements will be related to (1) business development and building the product portfolio, (2) reduction in expenses, and (3) the return of capital to the shareholders.

The stock is currently trading at a forward multiple of 8x, which is the lowest among the world's 20 largest drug companies. The industry's average multiple is 13x. The sell-side expects the company to make an EPS of $6.09 in 2014.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.